- SWFX market sentiment is 71% bullish
- Pending orders in the 1000-pip range are set to buy in 67% of all cases
- No data releases will impact gold prices this week
The expected surge of the metal has occurred. Gold prices finally broke off from trading near the hourly simple moving averages near the 1,200 level and surged above the 1,210 level on Friday.
Oil price have increased after US Crude Oil Inventories data release on Wednesday at 14:30 GMT. The one-minute candle gained 21 pips, or 0.30% right after the data release. The crude oil price kept increasing in next hours after the release to continue trading at 71.03 level.
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of negative 2.1M, compare to forecasted negative 2.7M.
The United States crude oil price rose to a two-month high after the data release on Wednesday. The data release was bullish according to the market reaction putting the crude oil price above 70 cents per barrel.
The week will end with Canadian data
The week's macroeconomic releases will end on Friday. The Canadian CPI and Retail Sales data sets will influence the strength of the Canadian Dollar at 12:30 GMT.
The event will be covered by Dukascopy Analytics on the bank's live webinar platform. The cover webinar will begin at 12:20 GMT.
XAU/USD short term forecast
During Thursday's trading session, the simple moving averages pushed the yellow metal to surge as it was expected. The gold is moving closer to the 61.80% Fibonacci retracement level, which gold should reach in next couple of days.
Moreover, the simple moving averages are trying to catch up the rate to support the yellow metal to break through the Fibonacci retracement level in the near-term future.
Hourly Chart
The yellow metal on Friday finally reached the resistance levels near the 1,213.00 level on the daily chart. Namely, the combined resistance of a 50.00% Fibonacci retracement level and the 55-day simple moving average were reached.
The levels are expected to get passed. If that scenario occurs, gold prices should surge up to 1,220.00.
On the other hand the bullion might get pressured into a decline by the resistance levels and test the support of the ascending pattern near the 1,200.00 level.
Daily Chart
Markets remain long on gold
Swiss traders remained long on gold, as 71% of trader open positions were long on Friday.
Meanwhile, most trader set up pending orders are set to buy the metal by closing short positions or opening additional long positions.
Namely, 66% of all trader set up orders are set to buy the metal under various conditions. This indicates that the retail sector might push the price higher, in the near future.